ongoing support, and it can greatly
influence the overall enjoyment you get
fromrunning the franchise business.
In the category of Financial Opportunity,
low-cost franchisees are slightly more
satisfied than franchisees of more expensive
brands, even though their average annual
income is approximately the same as our
overall franchise benchmark ($78,009 vs.
$79,684). (It's important to note that while
the average income may be the same, the
return on investment may actually be
significantly higher on a percentage basis
because the investment is somuch lower.)
The lower-risk nature of low-cost
franchises is increasingly popular with all
levels of investors, and the number of
opportunities and types of businesses
within the space increases every day.
However, as we caution with every
franchise model at every investment level,
not all franchises are equal, and not all “low-
cost” opportunities are as good as they
sound. It is important to do your
homework, talk to current franchise
owners, and be sure your expectations are
realistic.
No matter how good the franchise brand
and the franchisee satisfaction, ultimately,
what matters most is how you fit into their
franchi se system. That 's why Ken
Hutcheson from U.S. Lawns says a portion
of your franchise research should include
time in the home office of the franchise
company you're considering and “in the
trenches”with franchisees.
“There is nothing like meeting people face
to face, because this is still a personal type of
enterprise. See what the people behind the
franchise brand look like and whether you
fit with them as individuals,” Hutcheson
said.
Franchise Business
August-September 2014 | BusinessWorld | 111
